Employees at the Waste Management Corporation (WAMCO) branch in Gaaf Dhaal Thinadhoo have been dismissed after protesting against the company’s failure to deposit pension contributions for 19 months.
Ali Nabith Mohamed and Mohamed Naif received their termination letters yesterday. Both documents were signed by WAMCO’s Managing Director, Mujthaba Jaleel.
The protest took place on June 6 in front of the Thinadhoo branch, after the prolonged delay in pension payments remained unresolved despite repeated requests for a solution.
The two employees were dismissed under Section 23 of the Employment Act, which outlines circumstances where an employee may be terminated without notice. This provision applies if continued employment is deemed detrimental to the employer or the workplace, or in cases of misconduct or fraud.
Depositing pension contributions is a legal requirement. WAMCO last made a pension deposit on October 16, 2024. Since then, the company has failed to credit the pension accounts of its employees.
Despite the non-payment to the Pension Office, employees reported that the pension contribution amount continues to be deducted from their salaries every month.
In January, WAMCO admitted to the lapse in pension payments, attributing the failure to the company’s inability to recover outstanding debts owed to it.
WAMCO is one of the largest state-owned enterprises in terms of workforce. Due to persistent issues with households failing to pay for waste management services, the company integrated its waste collection bills with electricity bills in the Greater Male’ Area in 2023.
Under the Pension Act, seven percent of an employee's basic salary must be deducted for pension contributions, with the employer required to match that amount. This is a mandatory obligation for all employers under the law.
